Shanghai govt. says Tesla local plant talks on track

Accuracy score :

97%

TALKS between Telsa Inc. and Shanghai authorities over building a local manufacturing plant remain on track, the city government said late Tuesday, easing concerns of a breakdown in negotiations after the U.S. electric carmaker’s chief criticized Chinese trade rules last week.

Tesla’s chief executive Elon Musk had fired off a series of posts on Twitter railing against a claimed unequal playing field in China, which limits foreign ownership of Chinese ventures and imposes tariffs on imported cars.

Analysis: Tesla will most likely need full control over electric manufacturing IP to locally produce cars to compete in China. Imported cars will need to pay 50% to 100% import tax on top of retail.

A Local made Mercedes-benz C series would cost $150k USD in China

An imported version Mercedes-benz C series would cost $300k USD in China.

This difference for the same product makes local manufacturing competitive, Without Control of IP/technology Tesla loses competitive advantage in the worldwide market.

Conclusion: If Tesla can ink a manfacturing plant deal, expect international revenues to rise exponentially.